(Reuters) -British food ingredients maker Tate & Lyle warned on Wednesday that its annual profit and revenue would fall due to a demand slowdown in the Americas, its key market, knocking its shares to levels not seen since 2009.
The company has over the past year seen soft demand in the bakery sector in North America and lower pricing in Europe, and has also been contending more recently with higher costs and increased economic volatility due to U.S. tariffs.
It now expects a low single-digit drop in its revenue and adjusted core profit in the year to March 31, having previously guided for revenue growth at or just below 4%, and profit growth ahead of sales.
Shares in the firm, one of the world’s biggest producers of sweeteners, slid as much as 11.5% to 398 pence.
“We have seen a slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance,” CEO Nick Hampton said in a statement. He said the company was taking steps to boost revenue.
The company also saw revenue weakness in its Europe, Middle East and Africa region in its first half, while Asia Pacific was broadly in line after absorbing tariff costs.
The ingredient supplier to Splenda, a non-sugar sweetener that goes into Diet Coke and other sugar-free drinks, has been betting on growing demand for healthier food and drink options, with its $1.8 billion purchase last year of plant-based ingredients maker CP Kelco.
The London-listed firm reported annual revenue of 2.12 billion pounds ($2.86 billion) in fiscal 2025, and adjusted core earnings of 446 million pounds.
($1 = 0.7431 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips and Jan Harvey)
